Updated: July 10, 2020 (April 20, 2009)
Analyst ReportWhy Buy Through Volume Licensing Programs?
Customers can purchase legal Microsoft products through several different channels. When they buy a new computer, for example, it will typically ship with a Microsoft OS, such as Vista or Windows 7, which the OEM licenses from Microsoft and resells to the computer end user. OEMs may also bundle other Microsoft products, such as Office or Works, with new computers, and many Microsoft products can be purchased from retail and online stores.
The main alternative to OEM and retail channels is the volume licensing channel, in which authorized resellers provide Microsoft software to customers, placing the order through Microsoft’s volume licensing sales and distribution system.
Each channel has its advantages and disadvantages, but even organizations with only a few computers can benefit by purchasing Microsoft software through the volume licensing channel, which is the focus of this report. (For a comparison of Microsoft purchasing channels, see the chart “Purchasing Channels“.)
This report covers three major families of Microsoft volume licensing program—Open, Select, and Enterprise Agreements. The most obvious benefit of volume purchasing plans is lower software prices, as much as 60% below retail prices in some cases, and more flexible payment options. But there are several other major benefits, including a wider selection of products, availability of upgrades, rights to downgrade to earlier versions, license purchase tracking tools, technical support and training, and licensing models that simplify compliance.
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